The last round of talks, held in July this year, had collapsed as the union had demanded a 40 percent wage hike to have parity with the private sector.
“Wage revision in the public sector general insurance companies fell due in August 2007. However, the talks have been going on at a snail’s pace even as the companies have been logging impressive growth rates,” All India Insurance Employees Association (AIIEA) secretary J. Gurumurthy told IANS.
He said the four public sector firms — National Insurance, New India Assurance, Oriental Insurance and United India employing around 100,000 people — together logged a growth of 11 percent and procured a premium of Rs.13,128 crore during the first eight months of the current fiscal at a time when many private insurers registered negative growth.
“We hope the management comes out with acceptable offers during the Dec 22 (Tuesday) talks in Kolkata that would meet the genuine aspirations of the employees,” he said.
“GIPSA may offer 17.5 percent increase in line with what was offered in the banking sector which we will reject.”
Demanding the merger of four firms into one corporation, Gurumurthy said: “Unlike in the banking sector, employees are in favour of merger here. More than the banks, size is of major importance in insurance sector which in turn would enable investments in infrastructure.”
According to him, wage talks in Life Insurance Corporation (LIC) broke down as employees were dissatisfied with the management offer of 17.5 percent.
9 comments :
BPS,CPC & ANOMALY:
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Upto fourth cpc in govt jobs there was no point to point fitments available in & within a scale.Even relativity was not maintained on an equal basic of two different scales.For example say, a scale 1200-2040 someone was at a basic of 1700. Another person on the very next scale, say 1400-2600 also at 1700.Before pay revision both gross were more or less same, but after pay revision, a huge gap would have been found, say around 15% in basic+DA.It was not because, that other person was on higher scale. But it was due to the unscientific fitments-formula.In our bank/Insurance;s fitments we always find relativity between a sub-staff & clerk/asst/ and also between a clerk/asst & officer in these cases.
Even in same scale say 1400-2600, one was at basic 2000 having 13 increments and another one was at 1600 having 5 increments, but after pay revision it was found 13 increments shrunk to 6 or 7 and the person got only 2 to 3% rise in toto on Basic+DA. The case of 5 increments also shrunk to 1. The gap of 13-5=8 increments shrunk to a gap of 4 increments.More over HRA at that time was not so encouraging like fifth or sixth cpc.No ACP or MACP was introduced during those days.
All those spoiled one's interest to do a govt job, especially in different clerical caders, where promotions were slow.It was also found that someone joined just one day before the date of pay revision, drew same salary with other one who had 6-7 years service in that particular post.
On the other hand bank/insurance jobs had a stage to stage fitments and maintained proper relativity in pay revisions. Bank/insurance job's increments were double/triple of govt jobs in their respective stages of basics. And all those lured many govt employees to join in banking/insurance through BSRB/IBPS etc.
In fifth cpc initially it was a notional hike 20% on old basic subject to minimum starting basic of correspondent revised scales.But later on cabinet changed it to 40% on old basic. Ofcourse 100/- + 10% I.R. factor was there.So if we don't take I.R.s into account for seniors having 15 years of service, it was not so encouraging, but that 13 increments,that I told earlier shrunk to 9 or 10, instead of 6 or 7 as had been happened in earlier cpcs. But persons in the starting stage of the scale used to be benefited to an extend of 60 to 70% on old basic.In those days there was a saying in govt circle"In pay revision juniors are benefited like anything, but seniors are poor losers"
Previously upto fourth cpc pension was just updated like, ours happened for the persons retired on or after due date of bps, say 1st Nov 2002 but before date of bps finally signed, say 02 June 2005.But from fifth cpc adding of I.R. & 40% of old basic introduced like existing employees' pay revision.One can say it was not an updation of pension, but a revision of pension,almost in the line of pay revision for non retirees. Thanks to administration that they didn't accept 67% pension concept of fifth cpc beyond 33 years of service.Otherwise there would had been more differences and Com K.Anandkumar of AIBOC, had to write more vigorously in 'Business Standard'. Sixth cpc maintained, that 40% trend and recent anomaly committee is very soon, going to give an additional effect of grade pay for retirees of pre 2006. This will improve central pension further 7 to 10%.
(To be continued)
(Continued from earlier post)
BPS,CPC & ANOMALY:
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After fifth cpc anomaly committee, during 2003 upgrade most of the scales in central govt upward notionally from 1996 and gross improved 10 to 15% depending on scales.However LDC scale was not improved. In 2004 when DA was 67% NDA govt, before general election in April 2004, implemented 50% DP concept quoting fifth cpc recommendation, which should had been implemented in 2002 when central DA was 50%, if govt was sincere and not act with an eye on vote bank politics.DP implementation improved central salary further.
Sixth cpc history,known to all.It brings very first time in central govt services, almost a bank/insurance like stage to stage fitments, apart from grade pay.Old DP amount was restored by cabinet, superseding the recommendation of sixth cpc's 1.74 factor.An improvement of 5% gross came from cabinets this political decision. Starting right from grade pay enhancement to different new improvements' are notified now & then in central jobs during last couple of months, creat situations quite hard for other jobs like bank/insurance etc to maintain a relativity at per with it.
Thank You Mr Chandan for a detailed and logical discussion about the Central Govt. pay structure. You not only discussed the present position but also did a very good analysis of the past scenario when the Govt servants were poorly paid. The bankers,who do not aware of the history and used to be always in the advantageous position in the higher pay side may get some consolation. After all everybody has a right to enjoy the brighter side. Unlike the past, now Govt service is in a good position, let's not envy it.
Referring to MR AMITAVA MITRA December 22, 2009 9:39 AM.
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Dear Mitraji,
Presently I am in a nationalised bank for last 17 years recruited through BSRB. Before joining in Bank I worked in State Govt & Central Govt for eight long years combined (1984-92)in staff & establishment seats.I have also a good interest & depth in bank employees service conditions.Till date,I have been unable to find a suitable logic on the subject i.e. 'Why persons with pensionable jobs in govt,switched over to these sectors in Eighties, when pension was a distance dream in financial sectors?' Even SBI pension was not a full fledged one, at that time. There was also no family pension in SBI prior to 1986.
However, this time bank employees wage increase 17.5% pushed the attraction of a bank job far behind than that of a central government job, while compairing stress & strain involved between these two. Definitely unemployed will join in bank for employment, but not brains as it used to be happened in the days of Eighties & Nineties.One should observe that the so called wage hike every five years in banks have been quite minimal during the past decade or so whereas in central govt. there has been a quantum jump this time. As matters stand today the pay package in central govt. is quite high when compared with similar posts in banks. So naturally people who have other choices in hand will not join banks any more. And one should know that in banks now a days people have to toil hard even beyond ofice hours, that too being loaded with heavy risks all the time. In such a condition the present pay package wil not attract talents into banks.
This in a political atmosphere (sixth cpc) where the central govt employees gained a stupendous increase in their wages even beyond their wild dreams, that too with out the need to flex their union muscles even once. The Govt was generous to a fault and did not grudge the employees this bonanza, out of the revenue kit of the Govt. On the contrary present pay structure in the Indian banking industries, if one joins as a clerk he gets a salary or Rs7300/- in cities like Mumbai, Delhi, Kolkata, Chennai or any other metropolis and of still lesser amount when he posted in smaller towns, as some allowances are not admissible there. With the ongoing wage negotiations, the proposed hike will get them Rs9300/- per month; whereas the person stands to get far better salary with lesser responsibility with any central or state government jobs.What a paradox!
Dear LIC employees,
Having noticed the wrong method of approach by our leaders I wish to give my following suggestions for exploring the possibility of getting a better settlement..
1. outright rejection of 17.5% increase theory. applicable to poor nationalized bank employees .
2. LIC has proved successful, outperforming its private counterparts and maintaining the brand image with proven profitability and valuations.,hence entitled for due share for the staff by way of increased compensation.
3. Insist a minimum total salary of 10000 to the least paid employee at the lowest HRA center to suibstaff and minimum 12000 to the clerks at lowest HRA center.
4. When the central/state governments are liberal enough in making bonanza in the name of VITH pay commissison at the cost of increased debt burden /fiscal deficit which they will realize much next year with steep increase in DA, why a pea nut of 17.5% to bankmen and lic
5. Our union lost the battle and not in a position to bargain from the offer of 17.5%. not because of non availability of money but the step motherly attitude of the government/iba combine.
6. Your starting clerical scale should be in the band of 8000-28000 for 2836 point level and for officers 20000-70000 band . HGA s starting can be in between clerks and officers .
7. Calculate the burden with these projections and let them see whether they are having the capacity to pay or not.
8. Negotiate on the basis of profitability /business per employee /improved valuations/ stock market gain that the institution has made etc rather than the percentage increase during earlier settlements.
9. Our leaders failed to negotiate on the basis of relativity theory which is going to make the nationalized bank employees/pensioners the least paid in the country and no competition from any state government/public sector for taking that coveted position of being the last rank in the salary levels. This credit goes to UFBU only for not negotiating the right thing at the right time .Pensioners are also suffering for not getting full neutralisation of DA (pre 01.11.2002 pensioners) and pension updation.You should not compete to that position.
K.BALASUBRAMANIAN RETIRED SENIOR MANAGER UNDER VRS 2000 SCHEME INDIAN BANK
The existing employees got their arrears of bothe the earlier and present negotion wages, whereas the retired employees under SVRS i april2004 is YET TO gettheir revised pension based on the agreement of 2002. Hence I on behalf of al the retired employees request the GIPSA management to fix the revised pension and pay them as soon as possible and help0 the retired od employees who has built the big General Insurance empire in our country.
One year of my comment has passed-no result! GIPSA Management has totally forgotten the cream retired employees under SVRS.For payment of ex-gratia revised basic was taken-it implies that even the pension should also be given onthe revised salary of 2002 for the retirees who retired on 1st April 2004?DA,Gratuity.PF and other benefits thereon must be paid automatically without the demand of retirees. But GIPSA Management has totally forgotten their commitkent and the legal actiob has to be initiated by the retirees- a shameful factor for all public sector servants.Itis total inhuman attitude of the mangements towards the retired employees. Perhaps the management wants retirees tp RETIRE from life?
Recently the Supreme court has received all the judgement of various high courts of the country regarding non payment of revised salary effects of 2002 to svrs 2004 pensioners and after hearing all the witnesses, they have kept the judgement for reserve for a month. Now one month is getting over in a day or two and we, all the svrs pensioners of [2004] gipsa companies waiting eagerly for thedecision and request the apex court to help all these pillars of GI companies to have their legitimate arrears and help these senior citizens and senior employees of insurance.
We all the pensioners of GIPSA SVRS request our Supreme Court to decide in favor of Senior employees of GI companies and arrange to get their legitimate eligible revision of pension immediately.Jayakumar Bengaluru
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